SINGAPORE (Aug 22): Yongnam Holdings subsidiary, Yongnam Engineering & Construction Sdn Bhd, has agreed to acquire from vendor Vee Sen Property Sdn Bhd three land plots in Malaysia.

The properties comprise three adjoining lots of medium freehold industrial lands, with a total land area of 10.3 hectares, located at Ulu Choh, Pontian, Johor.

The cash consideration for the transaction payable is RM46.7 million (S$15.6 million), which was arrived at after arm’s length negotiations and on a willing buyer and willing seller basis, after taking into account.

The group intends to fund the acquisition using internal funds and external bank borrowings.

With the purchase of the properties, the group intends to move the majority of its current factory operations from Singapore to Malaysia.

This move is also expected to result in cost savings in fabrication labour cost for the group, as well as other ancillary staff costs, such as accommodation and transportation.

Shares of Yongnam closed 0.5% higher today at 20 Singaporean cents.